Regulating Artificial Intelligence in Indonesian Regional Government: A Normative Analysis of Regional Regulatory Authority

Abstract

This paper analyzes the regulation of Artificial Intelligence (AI) in Indonesian regional government from a public law and administrative governance perspective. Under Law No. 23 of 2014 on Regional Government, regional governments exercise authority over at least 32 concurrent governmental affairs that increasingly require technological innovation to improve efficiency, accountability, and public service delivery. Despite the growing adoption of AI, its utilization raises legal challenges, including data protection risks, algorithmic bias, accountability gaps, and fragmented governance practices. Using a normative juridical approach with doctrinal, policy, and limited comparative illustrative analysis, this study examines the existing legal framework governing electronic-based government administration, including the Regional Government Law, the Law on the Formation of Legislation, the Law on Government Administration, and related regulatory instruments. The findings reveal the absence of a specific and integrated legal framework regulating AI utilization at the regional government level, resulting in legal uncertainty and inconsistent implementation across regions. This paper argues that Regional Regulations (Peraturan Daerah) provide the most appropriate legal instrument to govern AI utilization in regional government, grounded in principles of regional autonomy, legislative authority, and administrative discretion. Proactive regional regulation is therefore essential to ensure lawful, transparent, and trustworthy AI governance.